Shares of Tesla Inc closed lower for a fifth consecutive session on Monday, caught in a techled selloff that has wiped more than 277 billion off the companys market value over the last month.
Highflying tech stocks, which powered the markets rebound from the pandemic lows in March last year, have been hit by a onetwo punch of rising yields and investors shifting funds to sectors poised to benefit from a recovery in the global economy aided by accelerated rollouts of COVID19 vaccines.
People went into this stock super aggressively to drive it from 40 to 900, and that means will usually come out just as fast, said Roth Capital Partners analyst Craig Irwin.
It was obviously overdone both at 200, and I would say well overdone at 900. Retail often doesnt sell as fast as the institutions, so the correction could last longer than for other tech stocks.
The techheavy Nasdaq index has declined more than 10.5 over the last three weeks. Teslas shares fell as much as 6.5 on Monday, while peers Nio Inc and Li Auto closed down 7.6 and 5.0 respectively.
The broader auto industry has been pressured by a global semiconductor chip shortage, which has caused a major delay in manufacturing activities and forced many companies to scale down production.
In late February, Tesla Chief Executive Officer Elon Musk said the companys Fremont, California plant was shut down for two days due to parts shortages.
The weekslong selloff has reduced Musks wealth by more than 49 billion as of…